STMicroelectronics (NYSE:STM) Shares Gap Down – Here’s Why

STMicroelectronics N.V. (NYSE:STM) gapped down before the market opened on Tuesday . The stock had previously closed at $79.91, but opened at $72.00. STMicroelectronics shares last traded at $73.6240, with a volume of 2,444,136 shares trading hands.

Analysts Set New Price Targets

STM has been the topic of several recent analyst reports. Morgan Stanley reiterated an “overweight” rating on shares of STMicroelectronics in a report on Thursday, May 28th. Deutsche Bank Aktiengesellschaft restated a “buy” rating on shares of STMicroelectronics in a report on Thursday, June 11th. Bank of America raised shares of STMicroelectronics from a “neutral” rating to a “buy” rating and set a $100.00 price target on the stock in a research note on Wednesday, June 10th. Robert W. Baird set a $90.00 price target on shares of STMicroelectronics in a report on Friday, April 24th. Finally, Craig Hallum raised shares of STMicroelectronics from a “hold” rating to a “buy” rating and set a $58.00 price objective for the company in a research note on Thursday, April 23rd. Eleven analysts have rated the stock with a Buy rating, two have given a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and a consensus target price of $64.39.

STMicroelectronics Stock Down 9.3%

The company has a current ratio of 3.31, a quick ratio of 2.34 and a debt-to-equity ratio of 0.12. The firm has a market capitalization of $65.10 billion, a price-to-earnings ratio of 454.03 and a beta of 1.94. The firm has a 50 day moving average price of $62.13 and a two-hundred day moving average price of $41.55.

STMicroelectronics (NYSE:STM) last posted its earnings results on Saturday, March 28th. The semiconductor producer reported $0.13 earnings per share (EPS) for the quarter. STMicroelectronics had a net margin of 1.19% and a return on equity of 3.01%. The firm had revenue of $3.10 billion during the quarter. On average, equities analysts expect that STMicroelectronics N.V. will post 1.17 earnings per share for the current fiscal year.

STMicroelectronics Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, September 29th. Stockholders of record on Tuesday, September 22nd will be given a $0.09 dividend. The ex-dividend date of this dividend is Tuesday, September 22nd. This represents a $0.36 annualized dividend and a dividend yield of 0.5%. STMicroelectronics’s dividend payout ratio is presently 193.75%.

Institutional Trading of STMicroelectronics

A number of institutional investors have recently added to or reduced their stakes in the business. JPMorgan Chase & Co. lifted its stake in shares of STMicroelectronics by 19.1% in the third quarter. JPMorgan Chase & Co. now owns 3,990,874 shares of the semiconductor producer’s stock worth $112,782,000 after acquiring an additional 641,327 shares in the last quarter. Maxi Investments CY Ltd purchased a new position in STMicroelectronics in the fourth quarter valued at about $2,335,000. M&T Bank Corp grew its stake in STMicroelectronics by 243.1% during the 4th quarter. M&T Bank Corp now owns 33,299 shares of the semiconductor producer’s stock valued at $864,000 after purchasing an additional 23,593 shares in the last quarter. Diversified Management Inc. acquired a new stake in STMicroelectronics during the 4th quarter valued at approximately $648,000. Finally, Analog Century Management LP increased its holdings in STMicroelectronics by 27.4% during the 3rd quarter. Analog Century Management LP now owns 2,780,953 shares of the semiconductor producer’s stock worth $78,590,000 after purchasing an additional 598,550 shares during the last quarter. 5.05% of the stock is owned by hedge funds and other institutional investors.

About STMicroelectronics

STMicroelectronics is a global semiconductor company headquartered in Geneva, Switzerland, formed through the 1987 merger of SGS Microelettronica and Thomson Semiconducteurs. The company designs, develops and manufactures a broad range of semiconductor products and solutions that serve multiple end markets worldwide. ST’s offerings span from basic components to integrated systems, emphasizing energy-efficient and high-performance devices for modern electronics.

Product categories include microcontrollers (notably the widely used STM32 family), analog and mixed-signal ICs, power MOSFETs and power-management devices, MEMS and sensors, image sensors, and discrete semiconductors.